Strategic Funding Review

ByTop10 StaffNov. 17, 2020

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In a Nutshell

Strategic Funding offers funding for small business loans, special loans for equipment financing, invoice factoring and revenue-based financing. You'll pay a flat fee, not a percentage in interest over time, and the loans are unsecured, meaning low risk of your existing capital and no prepayments.


  • Customers can receive financing quickly, in a few days
  • Many types of flexible, unsecured loans available


  • Includes some origination fees
  • Term and rate information is not available online

Strategic Funding At a Glance

Loan typesSmall business loans and merchant cash advances
Loan amount$10,000 to $1 million
Repayment TermsVaries
Top ProFast and flexible loans
Top ConLack of transparency
Suitable forSmall businesses who want a straightforward loan


Strategic Funding is an online lender founded in New York in 2006, committed to providing fast and flexible small business loans for companies operating in a variety of industries. The company offers loans ranging from $10,000 to $1 million and makes it easy to obtain funding. Small businesses that are looking to capitalize on growth opportunities can gain access to the financing to do so through Strategic Funding. The company provides standard small business loans but will also let customers use their future cash flows to borrow on an expedited timeline. Even borrowers with poor credit or businesses that are relatively new can apply for a loan through Strategic Funding. For all customers, though, the most pertinent details and terms are not revealed until they apply.

Suitable for?

Newer small businesses that need funding without an inordinate amount of paperwork or restrictive requirements will appreciate Strategic Funding’s straightforward approach. While other lenders may require proof of healthy profits, high creditworthiness and multiple years of operation, Strategic Funding looks at the bigger picture because of its unique lending methodology. Businesses can get quick access to working capital as a fixed percentage of their sales or the month’s unpaid invoices, and will not have to leave any collateral or struggle through a convoluted application process. Those who desire a predictable payment structure can also opt for a standard small business loan or an equipment financing loan, the latter of which offers fast approval so businesses can avoid delays when it comes to ordering new equipment.

Loan Features

There are four types of loans that Strategic Funding offers its potential borrowers. The first is financing based on revenue, meaning that businesses can obtain capital from their past performance. To qualify, a company must divulge its cash flows before being eligible to receive a fixed percentage of sales directly in their bank account each month. Invoice factoring through Strategic Funding is similar, enabling a borrower to receive their outstanding customer invoices immediately, minus a small fee. Strategic Funding does issue standard small business loans, but handles loans for financing equipment a bit differently. Companies that need new equipment fast, such as construction and transportation businesses, can get approved quickly and without collateral or a down payment, plus save on taxes for eligible purchases. The company’s application process is quick and painless, leading to swifter funding. Moreover, once approved, Strategic Funding customers can have their funds disbursed in as little as 48 hours.

Some highlights from our Strategic Funding review:

  • A wide variety of loan options available
  • Good range of loan amounts
  • Receive funding in as little as 48 hours
  • Simple and efficient application process
  • Excellent customer support
  • Outstanding blog offers business and financial insights
  • Friendly qualification requirements
  • Access financing without the need for collateral

The Application Process

Customers can begin their application process directly from Strategic Funding’s website. Applicants must answer a few basic questions about their income, their desired loan amount and when they need the financing. As quickly as 48 hours later, a Strategic Funding representative will contact the customer to continue the process. Borrowers that wish to speed up the application should have their paperwork prepared including bank statements, balance sheets, invoices, and any other application materials that may be required for the loan type they desire.

Strategic Funding requires that businesses applying for their loans be in operation for at least 6 months, though revenue and credit requirements are not listed. For revenue-based financing and invoice factoring, much less paperwork is required considering Strategic Funding will only need to see cash flow metrics. During the application process, borrowers will get the exact terms of the loan offered including its duration, interest rate and other pertinent details relating to the financing option selected.

Loan Terms – Strong Financing Sources

We would have liked to know more about the term lengths and interest rates that Strategic Funding sets on the many loans it offers, but this information is available as soon as customers complete an application. However, there is enough information to understand which type of loan is most suitable for each customer.

For revenue-based financing, Strategic Funding does not require any collateral or equity, and payments will be made by the borrower based on a fixed fraction of sales. Small business loans also do not require equity or collateral, and enable borrowers the predictability of a fixed payment structure. Small businesses that need a loan for the purchase of equipment have more advantages as Strategic Funding does not require a down payment and will be ready with fast approval. Additionally, they will also assist customers with the section 179 tax paperwork on their eligible equipment, which is a yearly deductible of up to $500,000.

An option for a small business with many clients and payment schedules is to factor their customer invoices. Strategic Funding is extremely flexible in this regard, imposing no maximum amount and no long-term commitment requirements for borrowers.

Repayment Terms

Borrowers should prepare themselves to pay an origination fee with any of the loans underwritten by Strategic Funding. Per a representative, the company uses factor rates, meaning that borrowers will pay a flat percentage of their loan rather than interest over time. Hypothetically, rather than paying 6.00% interest a borrower is obligated to pay $1.15 for every $1.00 that they borrow. This can get expensive fast, and though term lengths are unknown to borrowers that are not already approved, this method makes one’s effective interest less expensive the longer the term lasts. However, most of the loans provided by Strategic Funding are completely unsecured, meaning that companies do not have to risk their existing capital or make prepayments to access financing.

How Safe Is It?

Strategic Funding is a licensed lender in the state of California with license number 603G807, and has exceptionally positive feedback on its lending practices. Per the Better Business Bureau, the company has a solid A+ rating, meaning customers can put their trust in Strategic Funding without worry. They have been covered positively by many publications including Forbes, Entrepreneur, and Inc. Apart from their reputation, the company emphasizes information security. The Strategic Funding website is fully encrypted and sensitive customer information required to receive a loan, such as finances and other credentials are kept secure using high-standard digital security measures.

Help & Support

The demeanor, availability and knowledge of Strategic Funding’s customer service representatives. The company has a toll free phone line and email address for those customers who have questions or inquiries, and we found both methods responsive and fast, getting back to us within a single business day. Strategic Funding employees do not delay when faced with a question that they do not know, and will politely send callers to a manager or another authority figure. This comes in handy especially when asking for information that does not appear on their website, with representatives available to answer. 


Strategic Funding is an online lender with multiple options for almost any kind of small business. To finance equipment purchases, expand into new territory, cover payroll or simply pursue a new growth opportunity, small businesses can get fast, unsecured funding from a variety of different methods. The company offers standard small business loans, special loans for equipment financing, invoice factoring and revenue-based financing, and does not impose strict requirements on its borrowers. Relatively new businesses or those with weaker credit histories can gain the financing they need to pursue growth, and quickly – though it may be less affordable. While many of the details on term length and interest rates are only available at the end of the application process, the accolades that Strategic Funding receives online speak volumes of its credibility as a lender. Overall, Strategic Funding is a great option for businesses in any industry.

Physical Address

Strategic Funding Source, Inc.

120 West 45th Street

New York, NY 10036


Strategic Funding